Trading loss reliefs

You can only use the loss once but you can choose which relief(s) to claim – remember that with the reliefs there are no partial claims allowed and all of the loss must be used to the extent that income exists but as you will see from the notes (and very soon the lectures!) a mix of these losses is quite possible if the loss is big enough! Opening years relief note is a claim against ALL of the preceding 3 tax years.
When you compute terminal loss it is quite possible that not all of the loss of the final tax year falls into the terminal loss calculation, such that having claimed terminal loss relief there is still some loss available to go against total income – if the total income remaining however does not exceed the PA then the loss saves no tax anyway.

1. Yes, after using the loss against the total income of the preceding 3 tax years any remaining loss may be used in a current year claim and / or carried forward. The cap does apply under the opening years loss relief but the examiner has stated that it will only be tested in a current or preceding year claim.
2. Look at chapter 7, example 6 where the terminal loss is computed as 19,500. I f we compute the actual loss for the final tax year that could be relieved in a current or preceding year claim against total income, it would be as follows:
Penultimate tax year is 16/17 and using CYB assesses the 6,000 of the y/e 31 July 2016. Thus the final tax year will include the loss of the final period, 20,000 plus the overlap relief from opening years of 500 giving an actual allowable loss of 20,500 for 17/18.
Thus if terminal loss is claimed there would still be a loss 1,000 remaining to be used in the current or preceding tax year.
Examiner usually tests terminal loss in isolation, hence the requirement to just compute terminal loss in this example